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Assess the likely importance of these factors to Pure Gym's expansion into emerging markets, such as those in Asia, South America or Africa. - Edexcel - A-Level Business - Question 2 - 2017 - Paper 3

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Assess the likely importance of these factors to Pure Gym's expansion into emerging markets, such as those in Asia, South America or Africa.

Worked Solution & Example Answer:Assess the likely importance of these factors to Pure Gym's expansion into emerging markets, such as those in Asia, South America or Africa. - Edexcel - A-Level Business - Question 2 - 2017 - Paper 3

Step 1

Limitations to Expansion

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Answer

There are several limitations that Pure Gym may face when expanding into emerging markets. These include the appropriateness of the country's market, which encompasses factors such as disposable income levels, infrastructure, and staff availability.

Additionally, cultural differences in consumer behavior and preferences could impact the effectiveness of branding and promotional strategies. For example, if local consumers prefer different types of fitness facilities or pricing structures, Pure Gym may need to adjust its business model to cater to local tastes.

Step 2

Potential counterbalance

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Answer

Despite these limitations, there are factors that could potentially counterbalance the challenges. Since Pure Gym operates as a low-cost gym, it may be better positioned to attract members from lower-income regions compared to competitors charging higher fees. Establishing a joint venture with a local company could facilitate market entry, overcoming cultural barriers and enhancing understanding of local preferences.

Moreover, while the number of employees required may be limited, Pure Gym can leverage technology and standardized operations to maintain a consistent quality of service.

Step 3

Assessment of Global Similarities

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Answer

The fitness industry shares common expectations globally. Most consumers expect basic equipment such as free weights, treadmills, and resistance machines. While cultural differences exist, it is likely that Pure Gym can adapt its offering to meet local demands without significant compromises on quality or service standards.

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